Walless Tax Cookie | The Estonian Ministry of Finance proposal could make board members liable for pre-existing tax debt

The Estonian Ministry of Finance is advancing a legislative amendment that would extend the board members’ personal liability for a company’s tax debts – even where the board member did not cause the debt. Under the proposed change, a newly appointed board member could be held personally liable for pre-existing tax arrears.
Critics, including the Estonian Bar Association, the Chamber of Commerce and Industry, and the Ministry of Justice, argue the current framework is already sufficient. The amendment would undermine equal treatment of creditors by granting the tax authority a preferential position and reduce its incentive to pursue the company directly.
We are keeping an eye on the developments – follow Walless Tax Cookies series on LinkedIn: https://shorturl.at/DTnu5.